The green zone is long term support.
The Pitchfork projects path of price, on a Pendulum Swing basis.
The sliding parallel (white) marks the overshoot and projected support.
As we see, the steep down sloping yellow dotted resistance line was broken 5 weeks ago. But that's no reason to rush in. Why not wait for more facts?
Do we have facts now?
Yes, we have....
If you’re new to my TV feed, I have been following 3 JPM hedged equity funds put spread collars (seagull) for 2 years now.
Some points to be aware of before using any of this info:
Theories are highly speculative dealer flows.
All the information is public.
Hedges are SPX quarterly expiry options.
Core concepts originate from Cem Karsan on fin twit.
...
Can't lose on this trade from here. :-) :-)
Buy low, sell high.
This is regular January expiration. WE STILL have one more day of Theta on Jan 16th also...
Selling the regular January $28 / $24 collar. Selling the call at $28 Jan and buying the $24 put. This will be for a net credit. FROM HERE, can't lose!!! :_)
Very fun compression.
TSLA IS ONE OF THE FEW STOCKS (large tech stocks) above ALL OF ITS MOVING AVERAGES on ALL time frames.
I think a collar is wise because we are buying AT A Resistance and the market is "kind of weak" but = R:R is about 1:3.5 ..
The collar resets the last business day of Feb, May, Aug, and Nov.
This is the smallest of the 3 funds JPMorgan manages with a collar. At 3 billion in assets, the impacts on markets are still relevant.
The options for the 3rd fund are not as well known, but using the reset date and the fact they use SPX options I’m able to make a guess at the relevant sizes and...
Here are the Levels for the JPM "Collar-Trade" Roll, the latest from past Thursday.
Although not "that" bullish like in Q4, a bit more upside for the upcoming 3 months may be priced in.
Update to ABNB Trade Setup:
This trade popped nicely today after several days of consolidation. I am expecting a small pullback sometime this week and so set up the following weekly collar:
10 SEP 21 $170/$157.50 for $0.35 credit:
Sold to Open the 10 SEP 21 $170 Call
Bought to Open the 10 SEP 21 $157.50 Put
Next week if the trade closes between that collar I...
NVDA Weekly Collar
I frequently use Weekly Collars to protect my swing trades while collecting premium each week. This is a great example of a weekly collar I just placed today on my NVDA swing trade with all the reasons for why I set it up.
The S&P500 is trapped in a fairly tight range, between 2830 and 2960, we are currently mid range.
Short-term traders can trade the range, while more longer term investors can wait for the break ….
Look to buy the SPY ETF near the 2930 bottom of the channel, or use the inverse ProShares Short S&P500 ETF (SH) to get short at the top of the channel (2950)
A week ago (1/3/19), I wrote a piece on RISK MANAGEMENT recommending purchasing a March Fence (aka a collar) for firms that are long ETH in their inventory. The trade was to buy the H $100 puts and sell the H $250 calls against it. When we sent out this report last week, the market for the fence was -8/8 (worth flat premium). Today, the market 0/16 (worth $8 -...
Bought SUPN at $5.65 as an investment, not a trade. In the past I have used collars to provide downside protection. Last collar expired last December. Collars should only be used in limited situation and timing them correctly is very important. It's only truly in hindsight that you can determine if the collar was a good decision. Last two collars worked out...
